Telangana - Economy
The Economy of Telangana is mainly driven by agriculture. Two important rivers of India, the Godavari and Krishna, flow through the state, providing irrigation. Farmers in Telangana mainly depend on rain-fed water sources for irrigation. Rice is the major food crop. other important crops are cotton, sugar cane, mango and tobacco are the local crops.
Recently, crops used for vegetable oil production such as sunflower and peanuts have gained favor. There are many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects and Nagarjuna Sagar Dam, the world's highest masonry dam. The state has also started to focus on the fields of information technology and biotechnology. Telangana is one of top IT exporting states of India. There are 68 Special Economic Zones in the state. Telangana is a mineral-rich state, with coal reserves at Singareni Colleries.
The new state is well known for its minerals, which include extensive coal deposits mined for power generation and industrial purposes, and extensive limestone deposits which are utilized by cement factories. Telangana also has deposits of bauxite and mica. Through Hyderabad, Telangana is well connected by road, rail and air links, and new airports and improved road and rail infrastructure are expected to be developed soon in several other major cities including Warangal, Nizamabad, Karimnagar, Ramagundam and Kothagudem.
Although inland, the state is served mainly through the port at Vadarevu on the eastern coast of Andhra Pradesh, about 170km east of Hyderabad. The port, which is part of the Vadarevu and Nizampatnam Industrial Corridor (VANPIC), is also an upcoming industrial park. It covers some 13,000 acres, including 4,000 acres for port development. In 2011, the property consultant Jones Lang LaSalle estimated the site as being worth US$250 million at the time of its purchase from local farmers, and it is now undergoing extensive redevelopment.
The new state is now India’s 15th largest in terms of GDP and population. With the new state government comprised of an assertive business and development focused cadre, and the region historically producing GDP growth figures twice the Indian national average, Telangana can be expected to develop as an industrial hub for India within the next decade.
By 2016 the government of the State of Telangana claimed it was the twelfth largest State in India both in terms of land and population with abundant Road, Rail and Air Transport connectivity and providing wide range of opportunities for the entrepreneur willing to establish industries in the State. Availability of Land, water, manpower at affordable price with congenial atmosphere are attracting the new industries for establishment in the State.
The State is now home for several major manufacturing industries in bulk drugs, pharmaceuticals, agro-processing, cement & mineral-based industries, high precision engineering, textiles, leather, apparels, automobiles and auto components industry, spices, horticulture, poultry farming, bio-technology, defense equipment etc. The Industry Sector is contributing around 25% to 30% to the Gross State Domestic Product with a direction of positive growth in the State.
Agriculture plays a pivotal role in the economy of the State and the better performance of this sector is vital for inclusive growth. Sustainable growth in Agriculture continues to be core agenda of the Government and occupies center stage in state economy embodying three thrust areas viz., (i) to promote inclusive growth, (ii) to enhance rural income, and (iii) to sustain food security. About 55.49 percent of the State’s population is dependent, on some form or the other, on farm activity for livelihoods, it is imperative to increase the farm incomes and ensuring sustainable growth in Telangana to reduce poverty. The share of agriculture sector to the Gross State Value Added (GSVA) in 2014-15 is 8.6 percent at current prices.
The pressure on agricultural land is ever increasing for industrialization, urbanization, housing, infrastructure and others. All these factors are forcing for conversion of agricultural land to non-agricultural uses. The scope for expansion of the area available for cultivation is coming down to that extent, ultimately decrease in net area sown. Paddy is the major food crop and staple food of the State. Other important crops grown are Maize, Jowar, Red gram, Green gram, Bengal gram, Groundnut, Soya bean, Mango, Cotton, Chillies, Sugarcane etc., and agriculture has been one of the important sources of income for the State's economy.
Rearing of Live Stock play an important role in the Economy, especially in the rural areas. Apart from agriculture many rural youth are eking their livelihood in dairy, rearing sheep, goat and pig etc. The prosperity of Agriculture obviously depends upon the Livestock population it has. They are not only helping the farmer in agricultural operations and also helping more in conserving soil health and paving path for healthy crops and conservation of moisture.
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